NAICS 112112 Quarterly Industry Report
Cattle Feedlots
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 112112Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report (NAICS 112112) provides valuation-focused intelligence for professionals assessing cattle feedlot businesses. Additional data is drawn from Bureau of Labor Statistics[6], U.S. Census Bureau[7].. Data is sourced from USDA NASS cattle on feed reports[8], USDA ERS livestock market analysis[9], and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for feedlot enterprises.
Industry Definition & Overview
Cattle Feedlots (NAICS 112112) encompasses establishments primarily engaged in feeding cattle for fattening, a process known as finishing, where animals are fed high-energy grain-based rations to reach market weight before slaughter. USDA National Agricultural Statistics Service[3] data show total U.S. feedlot capacity for operations with 1,000 or more head reached roughly 17.2 million head as of January 2025, with total cattle on feed at 14.3 million head. Geographically, Texas, Nebraska, Kansas, Colorado, and Iowa account for the vast majority of fed cattle production.
Structural concentration defines this sector, with large commercial operations dominating production volumes. Feedlots with capacity exceeding 50,000 head represent fewer than 4% of large operations but account for roughly 35% of total marketings per USDA cattle on feed reports[4]. Custom feeding arrangements, where feedlots finish cattle owned by outside investors or ranchers, represent a meaningful portion of industry activity. Revenue depends on the spread between feeder cattle purchase prices and finished cattle sale prices, minus feed costs, yardage charges, and veterinary expenses. Daily market pricing from the USDA Agricultural Marketing Service[5] drives these calculations.
Business valuations for feedlot operations must evaluate pen capacity, feed mill infrastructure, water supply systems, waste management compliance, existing customer relationships, and the historical cost of gain achieved by the operation. Geographic proximity to both cattle supply regions and packing plant capacity significantly influences operational economics and enterprise value.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for cattle feedlot operations
- Revenue and profitability analysis across custom feeding and owner-operator business models
- SBA size standard classification and lending threshold data for NAICS 112112
- Comparable transaction data from recent feedlot sales, acquisitions, and capacity expansions
- Market concentration analysis including capacity distribution and geographic clustering patterns
- Workforce and labor cost benchmarking for feedlot management, pen riders, and mill operators
- Industry risk assessment covering feed cost volatility, cattle market cycles, and regulatory compliance
- Environmental compliance overview including waste management, air quality, and water use permitting
- Capital expenditure profiles for pen construction, feed processing equipment, and water infrastructure
- Feed conversion and cost-of-gain benchmarking data for operational efficiency comparisons
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Animal Production and Aquaculture | 112 |
| Industry Group | Cattle Ranching and Farming | 1121 |
| NAICS Industry | Beef Cattle Ranching and Farming, including Feedlots | 11211 |
| National Industry | Cattle Feedlots | 112112 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 112111 | Beef Cattle Ranching and Farming | Beef cattle ranching operations that supply weaned calves and feeder cattle as primary livestock inputs to feedlot finishing programs |
| 311611 | Animal (except Poultry) Slaughtering | Animal slaughtering establishments that serve as the primary downstream buyer for finished fed cattle marketed from feedlot operations |
| 311119 | Other Animal Food Manufacturing | Other animal feed manufacturing operations that supply custom-formulated grain rations and nutritional supplements to commercial feedlot customers |
| 311612 | Meat Processed from Carcasses | Meat processed from purchased carcasses facilities that further fabricate beef into consumer-ready cuts and branded value-added products |
| 424510 | Grain and Field Bean Merchant Wholesalers | Grain and grain product merchant wholesalers that supply corn, sorghum, distillers grains, and other feed ingredients to feedlots |
| 424520 | Livestock Merchant Wholesalers | Livestock wholesale dealers and order buyers that support cattle placement and marketing transactions between ranchers and feedlot operators |
SBA Lending Summary
8
Total SBA Loans
$40.0M
Total Loan Volume
$5.0M
Average Loan Size
25 yrs
Average Loan Term
9.30%
Average Interest Rate
80
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[11] classifies Cattle Feedlots (NAICS 112112) with a size standard of $22.0 million in average annual receipts. This substantially higher threshold compared to cow-calf operations reflects the capital-intensive, high-throughput nature of feedlot businesses where annual revenues are driven by large volumes of cattle purchases and sales. Operations below this threshold qualify for SBA-backed financing[12], government contracting set-asides, and related small business support programs. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | First National Bank and Trust | 8 | $40.0M | $5.0M |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for cattle feedlots?
Cattle Feedlots are classified under NAICS code 112112, covering establishments primarily engaged in feeding cattle for fattening to market weight through concentrated grain-based finishing programs.
What is the SBA size standard for cattle feedlots?
The SBA[11] sets the size standard for NAICS 112112 at $22.0 million in average annual receipts, reflecting the high-volume, capital-intensive nature of feedlot operations compared to other agricultural sectors.
How concentrated is the U.S. feedlot industry?
Feedlots having capacity over 1,000 head account for roughly 87% of total marketings per USDA NASS[3] data. Operations exceeding 50,000 head capacity represent fewer than 4% of large feedlots but produce around 35% of all fed cattle.
What factors drive cattle feedlot valuations?
Key valuation drivers include one-time pen capacity, feed mill infrastructure, water supply adequacy, environmental permit status, historical cost-of-gain performance, proximity to packing plants, and customer relationships as documented through USDA market data[5].
What is custom cattle feeding?
Custom feeding involves feedlots finishing cattle owned by outside parties, including ranchers, investors, and cattle companies, who pay per-head daily yardage and feed charges. This business model reduces the feedlot operator's cattle ownership risk while generating stable fee-based revenue.
Which states lead in cattle feeding?
Texas, Nebraska, and Kansas collectively account for the majority of U.S. fed cattle production per USDA NASS cattle on feed data[8], followed by Colorado and Iowa, with these five states representing over 80% of total feedlot capacity.
What are the primary costs in feedlot operations?
Feed costs, typically representing 60% to 70% of total expenses, dominate feedlot economics, followed by feeder cattle purchase costs, yardage and overhead, veterinary and health programs, and labor. The USDA ERS[15] tracks these cost components through its livestock cost-of-production estimates.
What environmental regulations affect feedlot valuations?
Feedlots must comply with EPA[16] concentrated animal feeding operation (CAFO) regulations, including nutrient management plans, manure storage requirements, and water discharge permits. Environmental compliance status, permit transferability, and remediation liabilities are critical valuation considerations.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]USDA National Agricultural Statistics Service nass.usda.gov
- [4]USDA cattle on feed reports usda.library.cornell.edu
- [5]USDA Agricultural Marketing Service ams.usda.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]U.S. Census Bureau census.gov
- [8]USDA NASS cattle on feed reports nass.usda.gov
- [9]USDA ERS livestock market analysis ers.usda.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]SBA-backed financing sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
- [15]USDA ERS ers.usda.gov
- [16]EPA epa.gov
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